Gifting Appreciated Stock
Benefits to the Donor
- The donor is entitled to a charitable deduction on their tax return for the fair market value of the stock on the date of donation.
- The charitable deduction taken on the return can be up to 30% of adjusted gross income for the year. If the fair market value of the stock exceeds 30% the unused portion can be carried forward for the next five years.
- The donor will not have to pick up capital gain on the stock that is being donated, therefore saving the tax that would have been due on the capital gain had they sold the stock and then donated the cash.
- By donating appreciated stock the donor is able to get the stock out of their estate and reduce potential estate tax.
- It will make your heart sing because some children are lifted up into a home, health and hope.